Teapioca Lounge is a tea and dessert franchise serving bubble teas, smoothies, coffee, and unique frozen treats in a casual and inviting setting.
KEY FRANCHISE STATS
Franchisees
?
33
+
65%
65%
Franchise fee
?
$0
Investment
?
$268,000 - $427,000
Revenue (AUV)
?
Undisclosed
$0
+
n.a.
n.a.
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Teapioca Lounge is a distinctive beverage franchise that seamlessly merges the rich traditions of Asian tea culture with the dynamic ambiance of a modern American café. Founded in 2010 in Austin, Texas, the brand has cultivated a loyal following by offering a diverse menu that includes bubble teas, smoothies, brewed teas, and coffee-based drinks.
With its headquarters remaining in Austin, Teapioca Lounge began franchising in 2015, inviting entrepreneurs to join its mission of delivering high-quality, customizable beverages in a welcoming environment.
The franchise's menu is a testament to its commitment to variety and quality, featuring an array of options that cater to a wide range of tastes. From classic milk teas and fruit-infused blends to specialty smoothies and espresso-based drinks, Teapioca Lounge ensures that every customer finds a beverage to enjoy.
What truly differentiates Teapioca Lounge from its competitors is its unique fusion of cultural authenticity and contemporary design. The lounges are designed to be more than just places to grab a drink; they are community hubs where customers can relax, socialize, and experience a slice of Asian tea culture in a modern setting.
Initial investment
The initial investment required for a Teapioca Lounge franchise is
$268,000 - $427,000.
That is the total cost you would need to finance if you were to start this franchise.
These costs are provided by the franchisor in the Franchise Disclosure Document.
Type of Expenditure
Amount
Initial Fees
$0 to $0
Travel and Living Expenses While Training
$3,200 to $10,500
Rent / Real Estate Deposit
$7,400 to $25,000
Real Estate Site Selection
$0 to $0
Utility and Miscellaneous Security Deposits
$300 to $1,800
Leasehold Improvements
$143,000 to $208,000
Furniture, Fixtures, and Equipment
$45,000 to $55,000
Opening Inventory
$30,000 to $45,000
Office Supplies and Other Opening Items
$500 to $1,000
Grand Opening
$10,000 to $15,000
Insurance
$750 to $900
Signage
$5,000 to $10,000
Licensing and Permits
$500 to $1,000
Uniforms
$500 to $1,000
Legal / Accounting
$1,500 to $3,000
Additional Funds (Three Months)
$20,000 to $50,000
Total (Teapioca Franchise – Single Unit)
$267,650 to $427,200
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Type of Expenditure
Amount
Initial Fees
$0 to $0
Travel and Living Expenses While Training
$3,200 to $10,500
Rent / Real Estate Deposit
$7,400 to $25,000
Real Estate Site Selection
$0 to $0
Utility and Miscellaneous Security Deposits
$300 to $1,800
Leasehold Improvements
$143,000 to $208,000
Furniture, Fixtures, and Equipment
$45,000 to $55,000
Opening Inventory
$30,000 to $45,000
Office Supplies and Other Opening Items
$500 to $1,000
Grand Opening
$10,000 to $15,000
Insurance
$750 to $900
Signage
$5,000 to $10,000
Licensing and Permits
$500 to $1,000
Uniforms
$500 to $1,000
Legal / Accounting
$1,500 to $3,000
Additional Funds (Three Months)
$20,000 to $50,000
Total (Teapioca Franchise – Single Unit)
$267,650 to $427,200
Franchise Disclosure Document
Below is Teapioca Lounge's 2023 Franchise Disclosure Document. Upgrade to Pro or purchase the FDD to view and download the document.
Number of units
Teapioca Lounge had 33 total units in 2023, of which 33 were franchised-owned and 0 company-owned.
Teapioca provides a multi-tiered training framework to ensure franchisees are well-prepared for operating their business. This structured approach includes both mandatory and optional training initiatives aimed at operational efficiency and brand consistency. The main programs include:
Initial Training Program Franchisees and their designated managers are required to undergo an initial training session. While Teapioca does not charge tuition or training fees for this session, franchisees are responsible for covering all travel and living expenses. The training must be completed before the business opens and includes instruction on store operations and product preparation.
Ongoing Update Training Teapioca provides ongoing training sessions annually to ensure franchisees stay current with operational updates and brand standards. Attendance is required for one session per year, which lasts up to three days, not including any annual convention. While the training itself is free, franchisees must bear all associated travel and lodging costs.
Annual Convention Training Franchisees are also required to attend an annual training session during Teapioca's convention. The first two attendees are covered for the entrance fee, but hotel and airfare are the franchisee’s responsibility. Additional attendees are charged a set fee, and failure to attend results in a penalty.
Territory Protection
Teapioca does not offer traditional exclusive territory protection to its franchisees. While franchisees are required to submit three proposed locations for approval and must adhere to Teapioca’s location selection criteria, these approvals do not guarantee territorial exclusivity.
The franchise agreement does not restrict Teapioca from approving other franchises or company-owned locations nearby. However, franchisees may gain a degree of practical protection through the careful site selection and demographic analysis conducted by Teapioca’s approved vendors.
These assessments consider factors like proximity to high-traffic destinations, parking availability, and presence of competing businesses. Even with this analysis, Teapioca reserves the right to approve multiple units in overlapping market areas, leaving room for potential intra-brand competition.
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